Navy Acquisition via leasing: policy, politics, and polemics with the Maritime Prepositioned Ships
Miguel, San, Joseph G.
Shank, John K.
Summers, Donald E.
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In recent months, leasing has been prominent in the press in connection with the Air Force's ill-fated attempt to obtain the use of Boeing re-fueling tankers without buying them. Gone from memory is the early 1980's controversial Navy leasing program of Maritime Pre-positioned Ships that had a different result. This paper presents an analysis of the various issues and parties to the very creative and innovative financing on behalf of the Navy's Military Sealift Command. Still in existence today, the 1983 contracts for thirteen TAKX ships were valued at approximately $2.6 billion. While the decision is often framed as a lease versus purchase choice, the facts indicate that the option to purchase was not seen as viable at the time. In hindsight, the TAKX leasing program was successful and cost effective, despite the whirlwind of political commentary and intrigue and the dueling quantitative analyses surrounding it. However, as an unintended (or, perhaps, intended) consequence, laws and policies have since been changed so that leasing is no longer viable for financing military assets. The case presented here considers altering existing laws and regulations to once again permit leasing of military resources.
Acquisition research (Graduate School of Business & Public Policy)
NPS Report NumberNPS-AM-05-006
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Koenig, Richard W.; Mitchell, M. Scott; Haslam, Paul A. (Monterey California. Naval Postgraduate School, 2004-12);This project analyzes the Navy's 1982 decision to lease thirteen T-AKX class Maritime Prepositioning Ships (MPS) and five Champion Class T-5 replacement tankers. It examines the MPS/T-5 history, a brief history of Navy ...
Tinjum, Archie L. (Monterey, California. Naval Postgraduate School, 2008-12);With declining budgets and consolidation in the defense industry, should competition between prime and sub-prime contractors be fostered through innovative lease arrangements, similar to the Navy's TAKX (Maritime ...
Navy Acquisition via leasing: policy, politics, and polemics with the Maritime Prepositioned Ships Shank, John K.; Miguel, San, Joe; Summers, Donald E. (Monterey, California. Naval Postgraduate School, 2005); NPS-AM-05-046In recent months, leasing has been prominent in the press in connection with the Air Force's ill-fated attempt to obtain the use of Boeing re-fueling tankers without buying them. Gone from memory is the early 1980's ...